Shares in AIM-listed investing company Alexander David Investments fell sharply on Monday after the company announced that its investing activities had been completely written down.
In a quarterly update on its trading and financial position, the company stated that the board of Evergreen Oil had written to shareholders on October 23rd saying that it had "taken the decision to propose to shareholders that a vote is taken to place the company into voluntary liquidation".
The company update stated: "This proposal was carried at the general meeting on November 20th 2012. Therefore investing activities have been completely written down."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
With regard to its trading activities, the company stated that as of January 31st, the trading activities of the portfolio were valued at £1,600. As of the same date, the company stated that it had cash resources of approximately £2,000.
The updated concluded by stating: "The company continues to operate without access to income from its portfolio and limited cash. Accordingly, the board continues to make progress in reviewing two possible investment opportunities, each of which would, if consummated, provide additional funds for the company.
"The board expects to know shortly whether or not either of these opportunities can be consummated and will therefore make a further announcement at such time."
The net asset value per share of the company was 0.04p per share as of January 31st 2013.
Alexander David's share price was down 10% to 0.14p at 10:50 on Monday.
MF
